SoFi Technologies, Inc.

SoFi Technologies, Inc. (NASDAQ: SOFI) based in Brookwood, Alabama, southwest of Birmingham and near Tuscaloosa, is a producer and exporter of metallurgical coal for the global steel industry. These coal mines are located 1,400 to 2,100 feet underground, making them some of North America's deepest vertical shaft coal mines. Methane gas is also extracted from the Blue Creek coal seam by the company's operations.

Key Highlights

• The company reported YoY growth of 41.77% in net revenues to USD 252.24 million in FY21 (ended December 31, 2021) compared to USD 177.93 million in FY20.
• SOFI’s net losses increased to USD 483.94 million in FY21 vs. USD 224.05 million in FY20.
• As of December 31, 2021, the company had cash and cash equivalents of USD 494.71 million and total debt of USD 4.04 billion.
• SOFI’s loan growth for FY21 was 24.4%, higher than the industry median of 5.8%
• SOFI completed its acquisition of Technisys S.à.r.l. ("Technisys"), a leading cloud-native, digital multi-product core banking platform, on March 3, 2022.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• The stock is leaning towards the lower end of its 52-week range of USD 7.74 to USD 24.95.
• SOFI's stock price decreased 34.32% and 57.49% in the past six and nine months, respectively.

Conclusion: Considering the surge in topline, long-term profitability issues, technical indicators, and associated risks, we recommend a "Watch" rating on the stock at the closing price of USD 9.57, down 3.04%, as of March 21, 2022.

Technical Price Chart (as of March 21, 2022). Source: REFINITIV, Analysis by Kalkine Group

Technical Analysis Summary:

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.

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